On Pricing

An ongoing discussion of web app pricing strategies by Paul Farnell, founder of Litmus and Hiten Shah, founder of KISSmetrics.

Email Paul
paul@salted.com

Apr
20th

Sun

Steven Poole: Free your mind

The results of author Steven Poole’s experiment in giving away one of his books for free. Explores the benefits and drawbacks of free content.

Mar
28th

Fri

It Should Be Free?

Interesting article from Daniel Jalkut (via Dave). Identifies five types of transaction:

Pure Payment
Subsidized Payment
Pure Charity
Subsidized Theft
Pure Theft

Which method are you using with your customers?

Mar
6th

Thu

New pricing for Litmus

We launched our new price plan yesterday. The feedback has been good so far, so hopefully we made the right call.

Split testing your pricing

Another interesting discussion on the BoS board. Worth taking the time to read the thread, but the most interesting snippet for me was:

”Amazon has run A/B pricing experiments, and learned the hard way that customers *do* find out, and *are* upset about it. So their new policy is: if they run a price experiment, you’ll always get the lowest price in the experiment, when you get to the checkout. (So you might click on something with 5% off - when you get to the checkout, it’ll give it to you for 10% off, because that was the other offer that you didn’t see).” -AndrewMcG

Mar
4th

Tue

buying attention is a marketing expense, and one way to budget for that is to deduct it from the cost of your product

— Seth Godin

Mar
3rd

Mon

New Litmus price plans page (launching very soon)

Old Litmus price plans page

Wired: Why $0.00 Is the Future of Business

Feb
23rd

Sat

Ask IttyBiz: How Do I Figure Out Pricing?

Nice discussion of service pricing over on IttyBiz (via Dave)

Feb
5th

Tue

8 ways to beat free

Fantastic article from Kevin Kelly.